The Toyota Prius c hybrid is available in four grades, ranging from $18,950 to $23,230

At the North American International Auto Show (NAIAS) last month, Toyota proudly unveiled its new 2012 Prius c hybrid. The automaker boasted that the latest Prius member would be both fuel efficient and affordable, and today, the actual price figures have been released.

The starting manufacturer's suggested retail price (MSRP) for the 2012 Prius c hybrid is $18,950. However, the Prius c will be available in four grades, offering more features the higher the grade. The Prius c One has an MSRP of $18,950, while the Prius c Two is priced at $19,900, the Prius c Three is priced at $ 21,635 and the Prius c Four is priced at $23,230.

The Toyota Prius c One offers the basics like remote keyless entry, automatic climate control and a steering wheel with controls such as Bluetooth, audio and other options. Upgrading to the Prius c Two gets you a six-speaker audio system, a center console with armrest and storage, cruise control, engine immobilizer, a cargo area tonneau cover and a 60/40 split fold-down rear seat.

For those willing to bump up to the Prius c Three, drivers receive a plethora of technology for both entertainment and information such as a 6.1-inch touchscreen, Sirius XM Satellite Radio capability, HD Radio with iTunes Tagging, a Display Audio system with Navigation and Entune, advanced voice recognition, and a USB port with iPod connectivity. The Three also allows drivers to add 15-inch alloy wheels for an extra $390 and a power tilt/slide moonroof with sunshade for an extra $850.

The crème de la crème of the Prius c hybrids is the Four, with added 15-inch, 8-spoke alloy wheels, color-keyed heated power outside mirrors with turn signals, integrated fog lamps, and Softex-trimmed heated front seats. Prius c Four drivers can also choose to add a power tilt/slide moonroof with sliding shade for an extra $850, a 16-inch, 8-spoke alloy wheel package with P195/50R16 tires for an extra $300, or a 16-inch alloy wheel package that includes P195/50R16 tires and the moonroof with sliding sunshade for an extra $1,150.

"It's sized, priced, styled and packaged to appeal to young buyers on a budget who, until now, have probably found a hybrid experience out of reach," said Jim Lentz, Toyota USA president and CEO. "That's why we view the Prius as a gateway vehicle and a key component of our Prius strategy."

This is true for those who have the money to buy a vehicle and want to look at long term expenses. For those who are on a very limited budget, initial purchase price can be just at important at TCO since TCO is spread out over time while the initial cost must be absorbed more quickly. Most consumers purchase on impulse where initial cost wins out over looking down the road. If an impulse buyer sees a car for $18k and one beside it for $26K, even if the more expensive will cost less to own after 5-10 years they will probably buy the cheaper one anyhow since they are not going to spend the time to crunch the numbers first. Not the best way to buy things, but sadly the most common.